How can I make more profits from my money? Mr. Dukhiram
How can I judge that firm is good or bad? Mr. Dukhiram
State Bank Group SBI Cards & Payment Services Pvt Ltd. (with GE Capital) SBI Funds Management Ltd (with Society Generale) 1992 1998 SBI Factors & Commercial Services P Ltd. SBI Life Insurance Co.Ltd ( with Cardiff SA) 1991 2001 SBI Capital Markets Ltd. SBI DFHI Ltd.** 2004 1986 SBI, SBICI & 7 Associate Banks Foreign Subsidiaries & Joint Ventures Others - RRBs, UTI-AMC, C-EdgeTech
Increase in Business Growth (Deposits by 23.39% and Advances by 23.36%) Branch Network crossed 10000 during the year Market Share in Deposits increased over March 2007 by 61 bps Market Share in Demand Deposits - up at 17.40% Increase in Net Profit by 48.18% over last year Steady reduction in Cost to Income Ratio at 49.03% Strong Growth in International Banking Loan Book by 50.41% International Loans contribute 14% of Total Loans Mid Corporate exposure crosses Rs 1 laccrores Retail Banking – SBI Number One in disbursement of Home Loans
SBI Group – Financial Highlights FY08 Rs in Billion Total Income: 683.77 ( 100%) Interest Earned: 572.38 (83.7%) Non-Interest Income: 8695 (28.53%) Interest Expended : 339.83 (49.7%) Operating Income : 343.94 (50.3%) Employee Expenses 105.97 (15.5%) Net Interest Income : 232.55 (34.0%) Operating Expenses : 12609 (6.65%) Other Expenses: 94.04 (13.75%) Provision for Investment Depreciation: 8.29 (1.21%) Operating Profit:13107 (31.07%) Provision for Loan Losses:17.76 (2.60%) Provisions and Contingencies : 2668 (10.71%) Provisions for Std Assets:9.45 (1.38%) Profit Before Tax : 10439 (37.54%) Other Provisions :0.64 (0.09%) Provision for Tax: 3710(21.68%) Net Profit: 6729 (48.18%) Minority Interest: 253 (-1.2%) GroupProfit: 8960 (40.8%) (Figures in brackets indicate % to Total Income)
What is ratio analysis? I don’t know anything about it. Mr. Dukhiram
Liquidity ratio Comments: As the ideal ratio is 2:1 but public sector companies have a very low current ratio as they have very little need for current assets. But liquidity position of bank is not good. Lesser the current ratio , less will be the firm’s ability to meet current obligations
Liquidity ratio Comments: It is more rigorous and penetrating test of the liquidity position of a firm. 1:1 is the satisfactory level to meet all current claims. Bank’s short term solvency is in better position.
So should I now invest in this bank as its liquidity ratio is good? Mr. Dukhiram
PROFITABILITY RATIO Comments : Bank’s operating profit is increasing as compared to previous year, it shows that it would ensure adequate return to owners in comparison to previous year.
PROFITABILITY RATIO Comments : By analyzing gross profit ratio we measure that Bank has a good management as it implies that higher the gross profit to sales, higher will be the good managing power.
PROFITABILITY RATIO Comments : As the net profit ratio is not increasing at a satisfying level, it would not ensure adequate return to owners as well as it enable the bank to with stand adverse economic conditions.
Now profitability of firm is also good so shall I proceed now with my investment? Mr. Dukhiram
CAPITAL STRUCTURE RATIO
Capital structure ratio Comments: As it shows that the ratio is decreasing as compared to previous year, it is the danger signal for owners. If the project fails financially, the owners would lose heavily.
Capital structure ratio Comments: As we can see that the ratio in current year is less than 50%, it shows a danger signal in using excessive debt and also lack of ability to offer assured payment of interest to the lenders.
integrated ratio Comments: As firms earning power ratio is decreasing as compared to previous year, the bank should improve its performance either by generating more sales volume per rupee of investment or by increasing the profit margin per rupee of sales.
Q2 net up Net profit went up by 40.25% at Rs 2260 crore versus Rs 1611.42 crore. Net interest income (NII) also rose by 45% to Rs 5,455.35 as against Rs 3,762.93 crore. Consolidated NII was up by 42.53% to Rs 7,518.72 crore from Rs 5,275.12 crore. Net profit rose by 7.87% to Rs 2,378.19 crore from Rs 2,204.56 crore. Provision for non-performing assets (NPAs) stood at Rs 911 crore versus write back of Rs 16.5 crore. Treasury revenues went up by 32% at Rs 4,314.5 crore versus Rs 3,262.9 crore. Banking operations rose by 5.3%. Other income was up at Rs 2343.1 crore from Rs 2041.94 crore.